Foreign direct investment from Finland to Russia : Hydroline case research
Kovalchuk, Marina (2013)
Kovalchuk, Marina
Savonia-ammattikorkeakoulu
2013
All rights reserved
Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2013110516643
https://urn.fi/URN:NBN:fi:amk-2013110516643
Tiivistelmä
Russian-Finnish trade relations have long history and are strengthened by the two countries’ geographical location and cultural interaction. This thesis observes Russia as a destination for foreign direct investment (FDI) coming from Finland and made in the industrial sector. The work was conducted in cooperation with Hydroline Oy, whose needs and objectives set the frame for the analysis.
The main goal of the work was to provide the client company with information about setting up a production facility in Russia to apply this knowledge in the organization’s strategic planning. The research flows from a general overview of Russia’s economic trends and forecasts to the analysis of the existing Finnish experiences on the market and a specific, company-related investigation of the country’s machinery building industry. Although the research method model includes gathering and analysis of facts and figures, the main tool to achieve the objectives is qualitative. The primary information basis consists of interviews conducted with a representative of Hydroline and prominent Finnish investors on the market of Russia. Used as theoretical background as well as material for studying the operational environment, the secondary data contains academic works and publications of the world’s major economic and development organizations. Besides, the secondary information applied in the work includes legal documents and on-line materials concerning main FDI costs.
All in all, the research describes Russia as an FDI target territory from the point of view of investment suitability for medium-sized organizations similar to Hydroline. The final result is assessed in relation to the strategic value of the study for the client company’s market development project.
The main goal of the work was to provide the client company with information about setting up a production facility in Russia to apply this knowledge in the organization’s strategic planning. The research flows from a general overview of Russia’s economic trends and forecasts to the analysis of the existing Finnish experiences on the market and a specific, company-related investigation of the country’s machinery building industry. Although the research method model includes gathering and analysis of facts and figures, the main tool to achieve the objectives is qualitative. The primary information basis consists of interviews conducted with a representative of Hydroline and prominent Finnish investors on the market of Russia. Used as theoretical background as well as material for studying the operational environment, the secondary data contains academic works and publications of the world’s major economic and development organizations. Besides, the secondary information applied in the work includes legal documents and on-line materials concerning main FDI costs.
All in all, the research describes Russia as an FDI target territory from the point of view of investment suitability for medium-sized organizations similar to Hydroline. The final result is assessed in relation to the strategic value of the study for the client company’s market development project.